Ever at the point of buying an item or maybe some items, and you wish there are a couple of complementary products put together as one purchase unit. That is coming from a buyer’s perspective
The goal of every store is to increase revenue and AOV. On the path to achieving this is why brands create combo, package, or mix units tailored to the needs and shopping preferences of their customers.
A Forbes documentation shows that most businesses use bundling as a means of generating more sales, even big brands like Microsoft also bundle their products.
This technique is used mostly in e-commerce to boost sales. Most Shopify merchant puts products together in a single unit and set a discounted price to encourage buying.
As a Shopify product store, putting together items that are most likely to be used together will help you skyrocket your average value order and the revenue you get per customer. You can agree this will help you clear your stock in no time.
There are times when some products are fast selling and one in stock lagging in sales. You can boost sales for the latter product by bundling it with fast-selling goods.
For you as a Shopify merchant, you are trying to increase the average order value. In the end, you make your customers feel good, helping them to have more goods at lower prices. And also, give your customers the chance to try out new goods at lower risk.
In more precise terms, let’s define product bundling.
What is Product Bundling?
Product bundling is an e-commerce technique where you can group several products to be sold as a single unit with a price slash or discount.
Most times, product bundling is to help you sell more items with lesser promotion costs. First, it is to encourage your visitors to buy. Second, it is to increase revenue per visitor when shopping.
Product Bundling Advantages
There are several ways in which product bundling can help reach your business goals. Here are a few discussed:
1. Increase Sales
Product bundling is one of the many ways e-commerce brands increase sales. When products are put together in a single unit, it helps take off many products from the shelf in one shot.
A combo contains at least two similar, complementary or different products that can be bought together. Having two or more items leads to an increase in sales count.
2. Boost product awareness
Product bundling gives new products the floor and chance to garner sales. With bundling, you can create a combo of a fast-selling item with a new product that has no sales record and puts customers at lower risk when trying this new product.
It is also a means of discounting a new product to gain more sales loyalty, but this time it is in a mix of other items to be bought together.
3. Increase your average order value
AOV is a performance index that helps a business make a vital advertisement, product pricing, and other decisions. It is the average amount of orders placed by your customers.
Let’s say you have an AOV of $5, you can boost it by bundling items that are customers’ preferences or complementary items at a discounted price of $50. This increases the average order value.
4. Reduce promotion cost
With product bundling, you can reduce advertisement costs, especially for new products or slow-moving items. Having a single unit as a combo of products with your best-selling product and either a new product or a slow-moving product gives the new or slow-moving product the best advertisement to customers who buy from your store. Or attract visitors to buy.
5. Decrease inventory waste
Sometimes because some products are lagging in sales, they stay longer on the shelf while you’ve had other items create turnover in multiples. Sometimes such items end up getting damaged and non-sellable.
In this case, bundling the item with other selling items will help you reduce the quantity of the item in your store.
6. Build brand trust and customer loyalty.
Product bundling makes your customers feel you have them at the center of your business decision-making.
When products are bundled, they get price discounted. This discounting is what triggers a customer to want to buy the combo. They are getting more at a lesser price. With this, you are building brand trust and loyalty.
Types of Product Bundling
1. Buy One, Get One (BOGO) Bundling
Buy one, get one free is a common e-commerce sales technique that gets a customer to get another product or two of a product from buying one. That is when you give X for purchasing Y.
2. Collection Bundling
This is also called mix and match bundles. Bundling by collection happens when you put together, for example, a red silk gown with a midi-sized hat, pointed heels, and a clutch.
Puravida is a jewelry store and here is an example of a mix and match bundling or bundling by collection.
You can create multiple choices as with the example and make your customers mix them to meet their tastes. This bundling type also encourages buying in bulk.
3. New Product Bundle
With this type of product bundling, you can introduce or help a new product sell faster and get more awareness.
Most e-commerce stores launch a new product and add it to a bundle of their best-selling or fats-selling items.
4. Linked/Forced Bundling
You are not choking anything down your customers’ throats, relax. This type of bundling helps you sell a use-together item or items you can keep in a collection. When product A is added to the cart, product B is automatically added. That means none of the items can be bought without the other.
Although, this bundling type does not always happen. It is sure one way to sell a class of product. This technique is most suitable for those in the e-commerce service industry.
5. Gift Bundles
Be season conscious if you own a product store. Each season or holiday has some specificity attached, you can tailor a gift bundle to meet your visitors’ needs.
Having gift bundles helps your customers solve the problem of going overboard thinking of what to gift out to their loved ones, especially during special events.
Luxury perfume is a Shopify perfume store that creates a gift bundle and categorizes it to meet customers’ preferences.
This product bundle is a two-edged sword. It is solving your customers’ ‘what to gift’ problem and also building brand trust and loyalty for you. As well as growing your revenue.
How To Make Product Bundling Work For Your Store
– Pick the most suitable bundling type
Not all bundling types can work for your store. Each product bundling technique is set to work uniquely for each e-commerce niche.
– Understand customers’ preference
Before creating a bundle, know your customers’ preferences in buying. This will help you know what and which items to keep in a bundle.
– Make bundle price visible
If a customer is attracted to bundling and can’t find the price anywhere near, they might be tripped off buying because they do not know whether the bundling has made the items more expensive or not. Keeping your discounted price visible is a strategy to show your customers the bundle benefits them.
– Update bundles as stock moves
Each time a bundle is purchased, ensure you check your inventory to note if the items in the bundle are still available to keep the bundle valid. If an item goes out of stock, the bundle becomes non-sellable.
– Offer special bundles
Make special bundles for holidays or special events. This can come as a flash sale or at a more discounted price.
– Display a bundle side-by-side with individual products
One way to show your customers that they are better off buying a bundle than having a singular purchase of products is to stack either as recommendations the individual products and their prices.
TrueProducts is a laundry-based store with a usable example.
Bundling is one of the many ways to increase sales in your store. One thing with product bundling is that you are not streamlined to one style to get your goal achieved. There are multiple options to use.
Choose a strategy that best suits you. We hope this article helps you achieve that.